Bank of Canada cancels press conference after shooting on Parliament Hill

[TimLacroix]

No surprise that the Bank of Canada (BoC) is leaving its overnight interest rate at 1.00% for another six weeks – a position it has held since September 2010. Since any change to the overnight rate would directly impact Prime rate, the announcement that it will remain low is not only good news for variable rate mortgage holders, it’s also good news for every Canadian who has any loan attached to Prime, as well as for those who want to borrow money in the near future.

The not so good news is how what’s happening in the world around us has affected parts of the Canadian economy... Read More (http://business.financialpost.com/2014/10/22/bank-of-canada-sticks-with-1-interest-rate-but-dumps-neutral-stand/) .

If you do have a variable rate mortgage, or a debt that has Prime attached to it... take advantage of paying down this debt by increasing your payment a little while it still lasts.

The final interest rate announcement for the year is scheduled for December 3, 2014.

Here is a link to the Shooting of Person at Parliament Buidling (https://www.youtube.com/watch?v=XrGqoISd-do)

[BigMass]

a weaker economy will incentivize the BOC to lower rates. So why rush to pay off a variable rate mortgage when rates are more likely to go down instead of being raised?

[msommers]

Originally posted by TimLacroix
If you do have a variable rate mortgage, or a debt that has Prime attached to it... take advantage of paying down this debt by increasing your payment a little while it still lasts.



Thanks for the update, Tim. Are you feeling that rates will increase next announcement?

[TimLacroix]

Originally posted by BigMass
a weaker economy will incentivize the BOC to lower rates. So why rush to pay off a variable rate mortgage when rates are more likely to go down instead of being raised?

I doubt that Bank Of Canada will lower their rate from 1%... I do believe that increases are sometime away.

IMO - I would do a bit of paying down my mortgage / debt while rates are low... but also split where some of my money goes that I am investing for the future too.

Finding that balance of debt vs. investing is personal and is different for everyone.

[TimLacroix]

Originally posted by msommers


Thanks for the update, Tim. Are you feeling that rates will increase next announcement?

As mentioned above, I doubt we will see an increase from the Bank of Canada for a while.

[broken_legs]

"Much has been made of Stephen Poloz’s decision last month to drop any guidance on the direction of the next move in the central bank’s trendsetting lending rate, with the governor stressing that it could go up or down, depending on which way the economic headwinds blow"

Forcing people to consider that rates could actually go up (OR DOWN!) by not giving future guidance.

It's almost as if he's forcing people to start to think about maybe possibly considering becoming responsible for themselves.

What a stud, this guy.

[avishal26]

Originally posted by broken_legs
"Much has been made of Stephen Poloz’s decision last month to drop any guidance on the direction of the next move in the central bank’s trendsetting lending rate, with the governor stressing that it could go up or down, depending on which way the economic headwinds blow"

Forcing people to consider that rates could actually go up (OR DOWN!) by not giving future guidance.

It's almost as if he's forcing people to start to think about maybe possibly considering becoming responsible for themselves.

What a stud, this guy.

:werd:

Also, that means the central rate will now respond to the economy as opposed to somewhat driving it as it has been for the past few years.